The cost assigned to factors of production that the firm neither hires nor purchases is called
| A. | Opportunity cost |
| B. | Social cost |
| C. | Economic cost |
| D. | Imputed cost |
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Option: D Explanation : Click on Discuss to view users comments. |
A consumer's demand curve can be obtained from
| A. | Engel's curve |
| B. | Income-consumption curve |
| C. | Price-consumption curve |
| D. | None of these |
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Option: C Explanation : Click on Discuss to view users comments. |
The prime cost may be considered as
| A. | Sunk cost |
| B. | Direct cost |
| C. | Variable cost |
| D. | Fixed cost |
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Option: D Explanation : Click on Discuss to view users comments. |
The supply function, would shoot downward and to the right if the MC of all the firms in a perfectly competitive industry were to
| A. | No change |
| B. | Increase |
| C. | Decrease |
| D. | None of these |
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Option: B Explanation : Click on Discuss to view users comments. |
The competitive equilibrium leads to
| A. | Firms producing at a cost higher than the minimum. |
| B. | The firms producing at their minimum costs |
| C. | The firm producing with excess capacity |
| D. | Some firms producing under decreasing costs and others under increasing costs. |
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Option: A Explanation : Click on Discuss to view users comments. |
